GM may keep 661 dealers on its hit list

General Motors has offered to keep open 661 of its US dealers once targeted for closure as it tries to shore up sales after emerging from bankruptcy last year.

GM once planned to terminate franchise agreements with about 1,300 US dealers in a bid to operate its retail networks more efficiently and return the company to profitability. Some 1,160 of them have sought arbitration.

"By doing this we save a lot of time and energy and dollars," said Jim Bunnell, GM's General Manager of dealer network support.

GM North American President Mark Reuss said the automaker has opted to reinstate more than half of the dealers appealing closure in an effort to complete the arbitration process before the congressionally mandated deadline of July 15.

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